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An economic theory of optimal enactment and enforcement of laws

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  • Miceli, Thomas J.
  • Mungan, Murat C.

Abstract

We consider a government’s interrelated decisions of enacting laws prohibiting harmful behavior and choosing how aggressively to enforce those laws. There are three broad policies available to the government in this regard: not prohibiting the act at all, enacting a law and enforcing it, and enacting a law and not enforcing it. When enactment is costly and a fraction of the population reflexively complies with the law once its enactment has been announced (reflecting an expressive function of law), all three policies may be optimal, depending on the severity of the harm from the act and the fraction of reflexive compliers.

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  • Miceli, Thomas J. & Mungan, Murat C., 2021. "An economic theory of optimal enactment and enforcement of laws," International Review of Law and Economics, Elsevier, vol. 68(C).
    • Handle: RePEc:eee:irlaec:v:68:y:2021:i:c:s0144818821000533
    DOI: 10.1016/j.irle.2021.106029
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    References listed on IDEAS

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    9. Thomas J. Miceli & Murat C. Mungan, 2021. "The limit of law: factors influencing the decision to make harmful acts illegal," Economics of Governance, Springer, vol. 22(3), pages 293-307, September.
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    Cited by:

    1. Gilles Grolleau & Murat Mungan & Naoufel Mzoughi, 2022. "Letting Offenders Choose Their Own Punishment ?," Post-Print hal-03694337, HAL.
    2. Gilles Grolleau & Murat C. Mungan & Naoufel Mzoughi, 2022. "Letting offenders choose their punishment?," Kyklos, Wiley Blackwell, vol. 75(4), pages 607-617, November.
    3. Menegatti, Mario, 2023. "Variability in punishment, risk preferences and crime deterrence," International Review of Law and Economics, Elsevier, vol. 75(C).

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    JEL classification:

    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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